Real estate agents as statutory non employees

[Guest JimChad]

Section 3508 of the IRS code says that 3 groups of employees are to be treated as non-employees for withholding purposes, including getting a 1099. These three are direct sellers, real estate agents and companion sitters: even when they are in fact common law employees. In Who's the Employer?, Derrin tells a little more about this, but I still have one question. For compensation purposes, do I use 1099 minus business expenses reported on schedule C?

Also, can anyone with experience tell me of any surprises in adiminstering a Plan with a few of these people in it?

Or provide any tips on how to get the information on expenses from these people?